Pound Australian Dollar (GBP/AUD) Exchange Rate Climbs as China’s Trade Slumps
The Pound Australian Dollar (GBP/AUD) exchange rate is climbing today with little clear catalyst for the rise. The currency pair could be seeing gains off the back of a drastic downturn in Chinese trade, as well as a slowdown in Australia’s economic growth.
At time of writing the GBP/AUD exchange rate is at around AU$1.8202, which is up roughly 0.5% from this morning’s opening figures.
Australian Dollar (AUD) Drops as Chinese Trade Data Disappoints
The Australian Dollar (AUD) is falling today. A retreat in global risk appetite may be weighing on the ‘Aussie’ today.
Poor Chinese trade data is likely contributing to AUD’s losses today. The country’s imports and exports contracted at their sharpest pace in around 2 years in November.
The country’s ‘zero Covid’ approach leading to widespread production disruptions was highlighted as a key factor. The restrictions also weakened domestic, with international demand also weaker amid signs of a global economic slowdown.
The ‘Aussie’ may also be coming under pressure from below-forecast GDP figures today. Third quarter data pointed to a slowdown in economic expansion of 0.6% growth compared to the forecast 0.7%.
Higher interest rates and soaring prices limited business and household spending power. Economists are predicting that future data releases could be even more downbeat.
Pound (GBP) Climbs Despite Further Signs of Housing Slump
The Pound (GBP) is rising against its peers today with no clear catalyst for its movement. News of a fresh gas deal between the US and UK may be strengthening Sterling today.
US President Joe Biden agreed a deal on Wednesday to increase natural gas exports from the US to the UK. The agreement is aimed at reducing the use of Russian energy supplies.
On the other hand, the Pound’s gains could be capped today by further evidence of a drastic downturn in the UK housing sector.
Data released today by Halifax indicated UK house prices fell at their fastest rate in 14 years in November.
Karen Noye, mortgage expert at Quilter, said: ‘It may still be that particularly as we experience cold weather and subsequent expensive energy bills, those on the fence about a relocation or a step onto the property ladder will choose to wait it out, further reducing prices as we go through the winter.